Country Borrowed Almost $17b From Int'l Lenders In Previous Fiscal Year.

ISLAMABAD -- Pakistan borrowed almost $17 billion from international lenders in previous fiscal year (FY22) to improve it balance of payment situation that deteriorated due to repayment of previous loans and financing of widening current account deficit.

The government had exceeded the budget estimates of foreign assistance of $14.088 billion for the FY22, as the country had borrowed $16.97 billion from the international lenders.

The government borrowed to maintain its foreign exchange reserves, which reduced mainly due to the repayment against previous loans as well as financing of current account deficit that swelled to $17 billion in FY22.

Foreign inflows had almost dried up amid suspension of loan programme of the International Monetary Fund (IMF) in March mainly due to previous government's policy of giving subsidy on oil prices and announcing tax amnesty scheme for industrialists.

Pakistan was receiving foreign loans at rapid pace before suspension of the IMF loan programme in March this year as the country had received $12.178 billion in eight months (July to February) of current fiscal year. Later, in next four months (March to June), the government had borrowed $4.796 billion after suspension of IMF programme. The major financing came from China, $2.3 billion, in last month (Jun).

The latest data of the ministry of Economic Affairs has shown that Pakistan had borrowed $16.97billion dollars from various sources in previous fiscal year. The total receipt of $16.97 billion constitutes $4.828 billion from multilateral, $708.08 million from bilateral, $4.863 billion from foreign commercial banks, and $2.041 billion from issuance of bonds and $3 billion dollars time deposit from Saudi Arabia.

Among multilateral development partners, mainly the Asian Development Bank provided $1.625 billion, the World Bank disbursed $1.579 billion, the AIIB $41.62 million, IDB $78.98 million and IDB (S-Term) $ 1.327 billion. China disbursed $162.60 million in the last fiscal year, USA $60.72 million, Korea $5.51 million, UK $16.01 million, and Germany $16.68 million during the year 2021-22, according to the...